Consumer spending took an expected hit in September, which has major retailers such as Target, JC Penney, Kohl’s, Saks and Nordstrom cutting their outlooks – and prices – for the rest of the year.
Wal-Mart, the nation’s largest retailer, reported same-store sales were still solid, though slightly below average. Wal-Mart is sticking to its projection of a 1 percent to 2 percent increase in October. Costco Wholesale reported a 7-percent increase in September same-store sales, slightly below the company’s projection of 7.5 percent.
Target’s September sales drop (3 percent) was more than it anticipated (1.3 percent). Luxury stores also reported steep declines, likely because consumers are curbing spending on luxury and unnecessary items.
Retail analysts expect stores to use aggressive discounting in the coming months to gain momentum going into the holiday season.
Source:
USA Today: Wal-Mart survives, but Sept. leaves retailers cutting outlooks
